Abstract
Galloping demand for power and mounting constraints in its generation have forced electricity boards all over the country to impose power cuts. User industries have been forced to go for captive power plants to tide over the situation.
In this article, V Ranganathan and Damodar Mall compare captive power and grid power costs in Karnataka. At the observed low utilization of between 6 and 20 per cent, captive power cost is Rs 1.95 while grid power cost is only 31 paise per KWH. The authors argue that the user industries should pursue the options of cooperative generation of power or become a financing partner with the electricity boards for assured and reliable power supply.
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